Catasys, Inc. (NASDAQ: CATS), a leading AI and technology-enabled healthcare company, has substantially increased its enrollment by 31% YoY as of Dec. 31, 2017. Also, in 4Q17 the Company’s billings increased 33% YoY, to $2.8 million.
Contracted with a growing number of national and regional health plans, the Catasys OnTrak solution treats members with behavioral conditions that cause or exacerbate co-existing medical conditions. As of the beginning of March 2018, the Company’s current outreach pool was approximately 30,000, 20% higher than at the end of 2017.
Why it matters: Going forward, management expects substantial growth opportunities in FY18, and they have provided a financial guidance of $20 million in billings for FY18 and a year-end run rate of at least $25 million. Two analysts have buy ratings on CATS. Their target prices: $7.00 and $5.30.
Key quote: Terren Peizer, Chairman and CEO of CATS: “Catasys seeks to improve the health of insured members and subsequently lower costs for our insurance partners. Lowering the high costs to major health plans is the primary component of Catasys’ investment thesis.”
The back story: With its OnTrak solution, Catasys, Inc. improves member health while reducing inpatient and emergency-room utilization, driving a reduction of more than 50% in enrolled health insurers’ costs. OnTrak is currently available in 19 states to members of several leading health plans, including six of the nation’s largest plans.